Enhancing production and sale based on mathematical statistics and the genetic algorithm

Abstract

Enhancing production and sale has a very significant effect on the competitive advantage of any production enterprise. In practice, especially in companies with highly diversified production, products have a different impact on generating revenue. Therefore, operational management pay attention to the products of the utmost importance. The Pareto analysis is the most broadly used product classification method. It can be said that the results obtained by this analysis are still very burdened by decisionmakers' subjective attitudes. This paper proposes a model for selecting products with the biggest impact on generating revenue in an exact way. In the model's first stage, whether there is a linear relationship between volume demand and a discounted amount is analyzed applying mathematical statistics methods. In the second stage, the Genetic Algorithm (GA) method is proposed so as to obtain a near-optimal set of the most important products. The proposed model is shown to be a useful and effective assessment tool for sales and operational management in a production enterprise.

AI-Enabled Marketing Solutions in Marketing Decision Making: AI Application in Different Stages of Marketing Process

“…The largest number of applications is found in digital marketing, where many AI-based solutions have already been in use for years [5], [6], [7], [44]. The application areas are many -from campaign automation to personalization, advanced targeting and retargeting, to programmatic sampling and media buying, purchase and sales prediction and development of the recommendation systems [4], [6], [26], [32], [42].…”